NJ S4712 AI processing tax for displaced workers
New Jersey S4712 — Proposed 10% Tax on AI Computer Processing to Fund an "AI Workforce Impact Transition Fund" (Introduced Oct. 1, 2026)
New Jersey · N.J. S4712 (2026-2027)
- Status
- Proposed / pending
- Applies to
- AI processors and qualified AI businesses
- Enforced by
- New Jersey Division of Taxation; Department of Labor and Workforce Development (fund)
A New Jersey Senate bill would put a 10% tax on computer processing done by artificial intelligence systems for New Jersey businesses or by processors located in the state. The money would go to a new fund for workers who lose their jobs to AI, paying for career training, grants and high school dual-enrollment programs.
Who is protected: Workers in New Jersey displaced by artificial intelligence
Legal detail
S4712 (2026-2027 session): imposes a 10% tax on AI computer processing services, calculated on token value (units of processing) and differently for contracted vs. controlled processors; applies to processors in NJ and those performing work for in-state businesses; record-keeping duties for AI processors and qualified AI businesses; revenues dedicated to the "AI Workforce Impact Transition Fund" administered for displaced workers (career training, grants to organizations, dual enrollment); administrative costs capped at 10%; annual report by the Department of Labor and Workforce Development. "Displaced worker" = employment terminated or expected to become obsolete within 12 months due to AI system operation.
Key facts
| Jurisdiction | New Jersey |
|---|---|
| Level | State |
| Citation | N.J. S4712 (2026-2027) |
| Private right of action | No, agency enforcement only |
| Topics | AI hiring and employment |
| Bill text | New Jersey Senate No. 4712 (introduced text) — NJ Legislature |
More AI rules in New Jersey
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- S731/A796 — Data center ratepayer protection and grid-demand · In effect
- New Jersey S3379/A4096 data center transparency (2026) · In effect
- NJ developer litigation against municipal data center bans (2026) · Blocked / in litigation
- New Jersey Quijano AI data center delay and study commission bill (2026) · Proposed / pending
- NJ S4754 AI unauthorized practice of professions · Proposed / pending
Related AI hiring and employment rules elsewhere
- CA EO N-6-26 (AI Workforce) · In effect
- Maine LD 61 (employer surveillance disclosure & prohibition) · In effect
- Washington SHB 1672 (employee monitoring notice, ADS restrictions, emotion AI ban) · In effect
- Stop Spying Bosses Act (Senate, 2026) · Proposed / pending
- Meta AI Layoff Discrimination Lawsuit (2026) · Blocked / in litigation
- Kistler v. Eightfold AI (FCRA, AI hiring) · Blocked / in litigation
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